Frequently Asked Questions

These are some of the questions we get asked by people interested in becoming members of Lakeland Credit Union.

Why are Common Shares required? Expand/Collapse

Equity is vital to the growth and ongoing operation of any business. The provincial government has also recognized the need for equity and has made it a requirement for all Alberta credit unions to have 4% of their assets as equity by 1999.

The money you invest in Common Shares strengthens the financial position of Lakeland Credit Union and is used to develop new products and offer services which will benefit the members.

Like Common Shares in any company, the equity raised becomes part of Lakeland Credit Union’s capital reserves. Common Shares are not considered to be deposits and are therefore not guaranteed by the Credit Union Deposit Guarantee Corporation.

Are my other deposits guaranteed? Expand/Collapse

All of the Credit Union’s deposit products (except Common shares) are guaranteed 100% as to principal and interest, by the Credit Union Deposit Guarantee Corporation.

What is equity? Expand/Collapse

The “equity” or ownership of any business is represented by the owner’s investment (Common Shares), along with earnings retained in the organization to help it grow. Members are “stakeholders” in the success and rewards of the Credit Union.

Do I have to own Common Shares to qualify as a member? Expand/Collapse

The Alberta Credit Union Act requires all members to own Common Shares.

How many shares do I have to purchase to become a member? Expand/Collapse

Lakeland Credit Union specifies that all adult members own a minimum of 25 Common Shares. Shares have a par value of $1, therefore adult members are required to hold a minimum equity investment of $25. Members under the age of 18 and seniors over the age of 59 are required to own five Common Shares.

You may purchase additional Common Shares at any time to a maximum of 10,000.

What are the benefits of owning Common Shares? Expand/Collapse

As a member of Lakeland Credit Union, you participate in the profits of our organization. Dividends are distributed to members in proportion to their business dealings.

In addition, equity dividends will be paid in the manner recommended by the Board of Directors.

All dividends are currently distributed in the form of additional Common Shares (or cash, if your total Common Share holding exceed $10,000).

Are Common Shares redeemable? Expand/Collapse

Common Shares are an important part of the Credit Union’s Equity and Retained Earnings and are intended to support the long term strength of our organization. As such, Common Shares are subject to withdrawal restrictions and to the limitations within the Credit Union Act and our bylaws. The current policy established by the Board of Directors, allows for the redemption of common shares only under the following circumstances:

For balances over $10,000.

Member moves from the trading area.

A member business or organization ceases operations.

Upon death of the member.

When a member reaches age 65.

Members who wish to redeem Common Shares will submit a written request to the Board of Directors. The Board may redeem shares at a par value of $1 per share provided the redemption is not prohibited by the Credit Union Act, Regulation or Lakeland Credit Union’s By-Laws.